- A&R GROUP
February 10, 2023
How Your HR Department Can Become a Profit Center
HR departments have the ability to serve as a major profit center for businesses. By leveraging workforce development, educational and leadership grant funding, and federal state and local grant subsidies and tax credits, HR can help reduce operational costs while simultaneously empowering their employees with training opportunities and resources. In short, by taking advantage of these subsidies, businesses can save money while their employees gain valuable skills and knowledge to help them succeed in their roles.
Enhance your workforce development efforts
Businesses looking to capitalize on workforce development grant funding should consider partnering with local organizations, such as universities or trade schools, as well as state and federal government programs. These partnerships can help businesses identify and apply for relevant grants and subsidies, as well as provide access to additional educational resources and personnel training.
Additionally, it is important for businesses to understand the various federal and state tax credits that are available in order to maximize profit potential. Businesses should consult with a financial advisor, workforce development consultant or their federal, state or local economic and workforce development professionals to ensure that they are taking full advantage of all available credits.
Jerry D'Aquisto,
Director of Human Resources
Economic development tool to enhance job skills
For example, the following are some examples that will be used in 2023 to help promote, educate and train the A&R Group employees:
- Auburn Leadership Training – A&R secured Alabama Workforce Stabilization Program funding for a value of $45,000 to provide Leadership training for both the current and up-and-coming leaders. The training was provided by a partnership with Auburn Technical Assistance Center, and is a 9-week course where team members learn DiSC communication, Servant Leadership, The Power of Culture, Conflict and Difficult Conversations, Emotional Intelligence and Team-Centered Leadership.
- Lean Leadership Training – A&R secured Alabama Workforce Stabilization Program funding for a value of $7,596 to provide Lean Leadership training for four of its top performing leaders. The training was provided through a partnership with Auburn Technical Assistance Center, and the leaders learned how to take a systematic approach to eliminating waste, creating flow within an organization and improving overall customer value. A second class in the fall will take place for roughly 40 leaders with a projected value of $76,000.
- Work Opportunity Credits – This is a federal tax credit awarded to employers who invest in job seekers who face barriers in securing employment. It is an opportunity for A&R to secure up to $9,600 per qualified hire.
- Disaster Relief Credits – This federal credit will help A&R secure $2,400 per eligible employee that was employed during the last three major hurricanes (Sally, Zeta and Eta) that affected the Alabama Gulf Coast.
- Internship and Career Training – A&R created detailed curriculum for the 2023 Student Internship Program. The company will be partnering with several universities in Alabama, including the University of South Alabama, Auburn University and University of Alabama. In this program, A&R will be offering a multifaceted career path training program in which interns will learn about different departments – accounting, finance, communication, development, human resource management, commercial laundry, hospitality management, logistics and procurement. A&R is looking to offset the entire cost of the paid internship in partnership with the Alabama Career Center that will offset the cost of new interns at $15/hour, up to 400 hours.
- Mental Health First Aid Training – A&R partnered with the University of Alabama VitAL program to educate General Managers on how to identify anyone who is experiencing a mental health challenge, and how to handle the situation in a way that leads to a positive outcome. The company was able to offset the entire training cost through a grant sponsored by AWSP.
HR as the unrecognized profit center
By understanding the potential for HR to be a profit center, businesses can make informed decisions about how best to allocate resources and maximize profits. With access to tax credits, workforce training and development grants, free educational employee training and other forms of financial support, HR departments can help businesses save money while also providing employees with the skills and resources needed to succeed. With the right investments, HR departments can serve as an ever-increasing source of profits, employee morale and enhanced job skills for businesses.
